KUALA LUMPUR: The Malaysian government on Monday (Apr 6) announced an additional stimulus package worth RM10 billion (US$2.3 billion) to help struggling small- and medium-size enterprises (SMEs) affected by the COVID-19 outbreak.

In a live televised address, Prime Minister Muhyiddin Yassin noted that SMEs contributed to 40 per cent of the economy, adding that it was therefore necessary to sustain the companies through these trying times.

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“Firstly, the allocation for the previously announced wage subsidy programme will be increased to RM13.8 billion from the original RM5.9 billion,” he said, adding that this was applicable to companies with local workers earning below RM4,000.

Mr Muhyiddin then gave a breakdown explaining that in companies with 200 workers or more, the wage subsidy would be RM600 per head, whereas companies with between 76 to 200 workers would be entitled to RM800 per head.

“Finally, companies with up to 75 workers would be entitled to RM1,200 per worker,” he said, adding that the aid would be given for a duration of three months for all companies registered with the Companies Commission of Malaysia before Jan 1, 2020.

“An additional RM 2.1 billion has been allocated for all micro SMEs, where the government will give a special grant worth RM3,000 each for 700,000 micro SMEs nationwide,” he said.

The prime minister also said that the government would abolish the 2 per cent interest rate for the RM500 million Micro Credit Scheme in addition to exempting rental or offering rental discount for SMEs using premises owned by government linked corporations.

Mr Muhyiddin then urged private premise owners to do the same and added that those who give a discount exceeding 30 per cent would be entitled to additional tax exemptions.

“Also (the government) will allow a 25 per cent reduction in foreign workers' levy to all companies whose workers permits expire between Apr 1 and Dec 31, 2020. This reduction in levy does not apply to domestic workers,” he said.